Earlier, First Circuit Reversed Earlier Fees/Costs Awards After Determining State, Not Federal, Law Applied To Determination Of The Awards.
In In re Volkswagen & Audi Warranty Extension Litigation, 692 F.3d 4 (1st Cir. 2012), which happens to be a multidistrict class action involving oil sludge buildup in engines and related warranties, a settlement was reached between the class and defendants, resulting in a substantial fees/cost award calculated in accordance with federal law ($30 million in fees to class counsel and about $1.2 million in expenses). However, the First Circuit reversed because the fees and expenses should be calculated in accordance with state law given that a fee issue in a substantive one under Erie given that this was a diversity case (despite the fact the settlement agreement expressly had no specification of what law applied).
On remand, Class Counsel still did well, but not as good as before. They requested fees of between $19.3 – 25.1 million, with Volkswagen arguing that a negative multiplier should be applied. In the end, U.S. District Judge William G. Young, on remand, awarded Class Counsel $15.468 million in fees (lodestar augmented by a positive 2.0 multiplier) and nearly $1.2 million in expenses. If you want to view his opinion, you can get it on PACER by going to D. Mass. Case No. 1:07-md-01790-WGY (Doc. 430, filed Feb. 10, 2015).